Editor’s note: This is Part I of a two-part column examining La Plata County’s economy. Part II will appear Monday, June 1.
The La Plata County economy is failing.
A lack of economic growth is contributing to declines in jobs and wages, while rapidly rising home prices are forcing workers to leave the county. This is changing who we are as a community, moving us further from our vision of being an inclusive place to live for all ages and instead transforming us into another Colorado mountain resort town. What we need to change is obvious, but it is not easy.
Let’s begin with the economy, a top concern for many. The most basic measure of the economy is the GDP, or gross domestic product.
According to the U.S. Bureau of Economic Analysis, La Plata County’s GDP was $2.8 billion in 2002. It rose to $3.5 billion in 2005, fell after the Great Recession in 2008, then rose again to $3.5 billion in 2014. The county’s GDP then fell for six consecutive years while the rest of the nation experienced economic growth.
As of 2024, according to the Bureau of Economic Analysis, the county’s economy was the same size as it was in 2013: $3.28 billion. The economy has experienced essentially no growth in more than a decade and is smaller than it was in 2005. In contrast, Colorado’s GDP has grown by 50% since 2013, while Southwest Colorado counties collectively have grown by 25%. Only La Plata County has remained largely static.
That stagnation is now showing up in jobs, wages and housing affordability.
With little economic growth, the county has seen few new jobs. According to the U.S. Census Bureau’s County Business Patterns data, the number of payroll jobs stood at about 17,800 in 2002. That rose to 20,660 in 2013 and, as of 2023, stood at 20,350 jobs – about 300 fewer payroll jobs than a decade earlier.
A further impact of limited economic growth is stagnant wages. Adjusted for inflation, wages averaged about $42,000 annually in 2002, according to County Business Patterns data. That rose to $56,400 in 2013 but fell to $53,600 in 2023 – about $3,000 lower than a decade ago. With little economic growth, there simply is not enough new economic activity to support higher wages.
Since the economy is struggling, does that mean people are leaving La Plata County? Yes and no. The population rose to just over 56,000 in 2019 but has remained largely unchanged since.
Housing prices, however, have risen rapidly since COVID. According to the Durango Area Association of Realtors, the inflation-adjusted median home price in La Plata County was $426,800 in 2002. That rose to $496,000 in 2013 and then jumped to $675,000 in 2023. In the first quarter of 2026, in-town Durango homes sold for a median price of $940,000. Wages grew faster than housing prices from 2002 to 2013, making the county more affordable during that period. Since 2013, wages have fallen while housing costs have soared, erasing those gains.
As a result, workers are increasingly leaving the county. According to U.S. Census “On the Map” data, the number of commuters driving into La Plata County has increased by more than 200% since 2002. In raw numbers, nearly 5,500 more people now commute into the county than 20 years ago.
Meanwhile, according to Bureau of Labor Statistics data, the number of La Plata County residents holding jobs has fallen from 31,000 in 2008 to about 29,000 today. The U.S. Census data also show the number of jobs held by people 55 and older has doubled since 2002, while jobs held by workers 29 and younger have fallen by one-third. Fewer people are working in La Plata County, and those who are tend to be much closer to retirement age.
A critical reason for the housing affordability crisis is a lack of new housing. According to U.S. Census data, there are about 300 to 400 new housing permits per year. That is down sharply from the early 2000s, when 700 or more housing units were permitted annually. Yet the county’s population is larger now than it was then, meaning the number of new housing units permitted per capita is less than one-fifth of what it was 30 years ago.
The housing now being built is doing just enough to keep the population from falling. And much of it consists of custom homes priced beyond what local wages can support. Workers simply have fewer housing options each year.
La Plata County is transforming from a working community into a retirement and vacation destination, and the people who work here are increasingly driving in from outside the county.
The question now is whether the county is willing to change course before those trends become permanent.
Roger Zalneraitis is a former director of the La Plata Economic Development Alliance and previously worked as an economic researcher for the Federal Reserve Bank of Kansas City. He is currently CEO of MODSTREET, a La Plata County small business.
